Related: 12 Best States for Retirement: 2021
The U.S. is one of the richest countries in the world, but the wealth is unevenly distributed across the individual states, according to a report from Moneypenny.com, a service provider to global businesses.
Moneypenny released an index this week that ranks the states according to which ones are forecast to be richest and poorest in five years.
Researchers predicted the future values of real GDP, personal income per capita and Zillow home value data based on existing historical values by using an exponential smoothing algorithm to account for seasonality trends.
To create the index, they weighted the three data points with the highest value for each state assigned a figure of one. All the remaining values were then scaled back, normalized and added together to give a total score figure.
“It’s really interesting to see what the economic position of each state might look like in 2025, Joanna Swash, group chief executive of Moneypenny, said in a statement. All three factors that make up the index are extremely important in determining how wealthy a state is.”
See the gallery above for the 12 states forecast to be richest by 2025.
— Related on ThinkAdvisor: